Over the next four years, hydrocarbon production will grow by 4% a year and investments will reach 56,8 billion. A new dividend policy is also on the way: the 2013 coupon will rise by 2% compared to last year's, up to €1,10 per share. These are the main data emerging from the 2013-2016 industrial plan presented today in London by Eni. By mid-afternoon, the company's share on the Stock Exchange gained more than two and a half points.
PRODUCTION
In the previous plan, the increase in production was estimated at +3% per year. The growth strategy, explains the group, is based "on the significant contribution of key areas such as Russia, the Barents Sea, Kazakhstan, Venezuela, the far-east and the sub-Saharan region". The projects that will start production during the period of the plan will add 700 barrels per day by 2016: 80% will come from giant projects, while 40% from further development phases of fields already in production. "The growth rate of production expected beyond the period of the Plan - adds Eni - will be over 3% per year until 2022".
As regards the gas sector, the six-legged dog points out that "prospects remain difficult, particularly in Italy, due to the macroeconomic context which continues to be weak". An excess of supply persists on the Italian market – reads the plan – “also due to a lack of physical export capacity that allows the flow abroad of the substantial volumes of gas purchased and transported in Italy thanks to supply contracts 'take or pay'. In this context Eni is negotiating 80% of the supplies. The renegotiations aim to realign the prices of the gas purchased to those prevailing on the hubs, also aiming to obtain greater flexibility on the volumes covered by the take or pay contracts. The proforma adjusted EBITDA for the Gas & Power sector expected at the end of the plan will be 1,5 billion”.
INVESTMENTS
Eni plans investments of 56,8 billion for the period 2013-16 with an increase at the same euro-dollar exchange rate of around 1,6 billion euro compared to the previous plan. “The increase – explains Eni – is largely linked to new growth opportunities in Production and Exploration, including Mozambique. The capex plan will be supported by strong cash generation, around 20 billion a year over the plan period, driven by the increase in E&P production, the gradual recovery of middle and downstream activities, over 10 billion in disposals, including those Galp and Snam, and a rebalancing of the E&P portfolio”.
As for the residual stakes of Snam and Galp, the first must consider around 12% net of the convertible bond launched on the 8% of the residual capital after the sale of the 10% stake to CDP, while for Galp Eni could sell up to 11% net of 8% linked to a convertible bond and 5% linked to the Amorin call option. Furthermore, Eni has already collected 3,2 billion euros today with the sale of 20% of the project in Mozambique to the Chinese CNPC.
DIVIDENDS
Lastly, Eni "intends to adopt a new shareholder remuneration policy" and estimates that in 2013 it will be able to distribute a dividend up by 2% compared to 2012, equal to 1,10 euros per share. For 2012, Eni distributed a coupon of 1,08 euro per share.
